TransUnion CIBIL is the oldest, most preferred credit information bureau in India. It was founded in 2000 and today, it maintains records on almost 600 million individual credit users and 32 million businesses. Most lenders, therefore, approach TransUnion CIBIL to enquire about a loan borrower and assess their credit report.
Lenders assess risk through a metric called the CIBIL Score. The CIBIL score is a number assigned to credit users by TransUnion CIBIL. This number ranges from 300 to 900 and 300 is the lowest CIBIL score an individual can have.
A credit user’s CIBIL score speaks extensively about their credit habits. One of the first things it tells borrowers is how likely it is that they will repay loans on time. A good CIBIL score, i.e. anything in the range of 750 to 900, indicates excellent repayment capacity and creditworthiness. The CIBIL score also speaks about an individual’s credit utilisation ratio, the kind of debt they have and the number of years for which they have handled credit. Credit users who have a low credit utilisation ratio, a healthy mix of secured and unsecured loans and have been using credit for at least a while invariably have a good score and so do people who are not excessively dependent on credit and use it responsibly.
In conclusion, a good CIBIL score can help borrowers negotiate for good loan terms and conditions. Borrowers should check CIBIL score for home loans and apply for a loan only if their score is in the good or excellent credit score range. However, if one checks their CIBIL score on TransUnion CIBIL’s website, one has to mandatorily pay a fee. In this article, we talk about how to check CIBIL scores by PAN card for free. So, read on.
Check CIBIL Scores by PAN Card: Here’s What You Need to Know
Many websites allow loan applicants to check their CIBIL scores for free. These websites require users to enter details, such as name, phone number, email address, etc. One of the key details that these websites ask for is the PAN card.
The PAN identification system is a unique system that allows the Government of India to maintain all tax-related information about a particular taxpayer under a single PAN number. The best thing about this identification system is that no two individuals can have the same PAN and thus, an individual’s PAN details are one of the easiest ways to maintain and track all information related to them. It is thus that these websites ask users to share their PAN details with them as PAN details allow website owners to correctly match them with their TransUnion CIBIL profile and therefore, fetch the right CIBIL score from the system.
If you want to check your CIBIL score by PAN card, simply follow these steps:
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Visit a website that allows users to check their CIBIL score for free. Once on the website, select the ‘Check Your CIBIL Score for Free’ option.
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Next, enter all the information that the website asks you to enter, such as your name, email address, date of birth, phone number, residential PIN code, etc.
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Provide your PAN card details.
Once you enter these details, the website will fetch your CIBIL score within seconds. If your score falls within the good credit score range, i.e. 750 to 900, you can go ahead and apply for the loan. However, if you do not have the ideal CIBIL for home loans, here are a few things you can do to improve your CIBIL score rating and establish eligibility for the most ideal loan terms and conditions:
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To start with, start paying your loan EMIs on time and without defaulting. If you do miss an EMI due date, clear the missed payment before the next due date. This will help you build a clean repayment track record and therefore, a good CIBIL score.
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A high credit utilisation ratio reflects excessive dependency on credit. Therefore, pay off some credit card debt and bring your credit utilisation ratio under 30%. More importantly, get into the habit of paying the entire amount due on your credit cards or not using the card at all.
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Maintain a mix of both secured and unsecured loans to showcase your ability to handle all kinds of debt. Further, never close old loan accounts and credit cards to make sure you have a long credit history.
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Lastly, never apply for too many loans simultaneously, especially if you have been served rejections by a few lenders, to avoid coming across as excessively dependent on credit.
